Munich, March 31, 2017 – Following a record year in 2016, indicators are pointing to continued strong growth for the Nemetschek Group (ISIN DE0006452907) in 2017. The company, one of the world’s leading software providers for the AEC (Architecture, Engineering, Construction) industry, again anticipates clear double-digit growth rates for Group revenue and Group EBITDA for the current financial year.

In the 2016 financial year, Nemetschek continued on its dynamic growth course and was able to increase earnings over-proportionally to revenue. “Throughout the entire course of the year, we have achieved double-digit growth rates while strengthening our global market position,” said Patrik Heider, Spokesman of the Executive Board and CFOO of the Nemetschek Group. “In addition to these operating successes, we were able to integrate two additional brands – Design Data and dRofus – in our portfolio and thus broaden our base for future growth even further.”

Key figures of the Group’s success in 2016

Group revenue rose to an all-time high of EUR 337.3 million, a growth of 18.2% compared to the previous year (EUR 285.3 million). Purely organic growth was a high 15.9%.

In terms of geography, the increase in revenue had a broad base: Non-domestic revenues climbed by 21.7% to EUR 230.5 million (previous year: EUR 189.5 million). The share of non-domestic revenue thus continued to grow according to plan, rising to 68.4% (previous year: 66.4%). Germany, too, continued to develop positively with double-digit revenue growth of 11.4%, rising to EUR 106.7 million (previous year: EUR 95.8 million).

The two pillars of revenue “software licenses” and “recurring revenue from software service contracts and rental models” grew at an almost identical pace. Recurring revenue rose by 19.7% to EUR 146.5 million (previous year: EUR 122.4 million), and now constitutes more than 43% of Group revenue. Software licenses also increased considerably by 16.9% to EUR 175.8 million (previous year: EUR 150.4 million).

Operating earnings before interest, tax and depreciation and amortization (EBITDA) grew over-proportionally to Group revenue by 26.6%, rising to EUR 88.0 million (previous year: EUR 69.5 million). The EBITDA margin improved over the course of the 2016 financial year, reaching 26.1%, following 24.4% in the previous year. In addition to strong growth, a one-off gain in the amount of EUR 1.9 million contributed to the increase in earnings. On the other hand, a negative tax effect in the amount of EUR 1.4 million as well as success-related increases in personnel costs had an impact. Even after adjustment for the positive one-off effect, Nemetschek was able to increase the EBITDA more strongly than revenue to EUR 86.1 million and improve the EBITDA margin to 25.5%.

With a plus of 30.7%, the net income for the year (Group shares) rose to EUR 46.9 million (previous year: EUR 35.9 million), which resulted in an increase in earnings per share to EUR 1.22 (previous year: EUR 0.93 per share).

The operating cash flow increased by 22.4% to EUR 79.7 million (previous year: EUR 65.1 million). The Group equity ratio remained high at 44.4% (previous year: 45.0%).

As a result of the positive business development, a dividend in the amount of EUR 0.65 per share will be proposed to the annual general meeting on June 1, 2017. This would be an increase of 30% compared to the previous year (EUR 0.50 per share).

Development of the segments

All four segments contributed to the favorable development of business in 2016.

In the Design segment, revenue rose by 11.1% to EUR 220.9 million. The Graphisoft brand achieved the strongest growth, followed by Data Design System and Allplan. EBITDA increased over-proportionally to revenue by 27.9% to EUR 63.2 million. The EBITDA margin improved from 24.9% to 28.6%.

The Build segment achieved a growth in revenue of 45.6%, rising to EUR 87.5 million. The Solibri brand, acquired at the end of 2015, is included for the first time for a full 12 months with a revenue contribution of EUR 4.5 million, and Design Data, acquired on August 1, 2016, contributed revenue amounting to EUR 4.7 million over a five-month period. Organic growth, driven in particular by US brand Bluebeam Software, reached a very high level with around 31%. EBITDA increased by 22.7% to EUR 12.8 million, with growth remaining below revenue growth as a result of major investments. The EBITDA margin reached 14.7% (previous year: 17.4%).

In the Manage segment, revenue rose by 12.0% to EUR 7.1 million. EBITDA was able to grow over-proportionally to revenue by 19.4%, rising to EUR 1.6 million. Accordingly, the EBITDA margin increased to 22.7% (previous year: 21.3%).

The Media & Entertainment segment increased revenue by 8.7% to EUR 21.8 million. EBITDA rose slightly from EUR 8.2 million to EUR 8.4 million, resulting in an EBITDA margin of 38.6% (previous year: 41.0%). Investments in product innovations are reflected in the earnings.

Optimistic outlook for 2017

In 2017, the Nemetschek Group will continue to pursue its corporate policy which aims for sustained growth. This growth is coupled by strategic investments, e.g., in further internationalization and cross-brand projects.

Without accounting for currency influences and further possible acquisitions, the Nemetschek Group plans to generate Group revenue in the range of EUR 395 million to EUR 401 million (+17% to +19%) in the 2017 financial year. Purely organic growth (excluding the companies dRofus, consolidated since the beginning of the year, and Design Data, included for the first time for the full 12 months) is anticipated to be between 13% and 15%.

Operating earnings are also expected to grow considerably. The executive board anticipates a 2017 Group EBITDA of between EUR 100 million and EUR 103 million. This would be an increase of 16% to 20% compared to the adjusted EBITDA of the previous year (EUR 86.1 million). Despite strategic investments and the lower EBITDA margins of the strongly expanding brands, this will allow Nemetschek to maintain the already high margin from 2016 in order to secure sustainable growth.

Nemetschek Group: Overview of key figures

In EUR million

Q4 2016

Q4 2015

Δ in %

12M 2016

12M 2015

Δ in %

Revenue

91.9

79.3

+15.8%

337.3

285.3

+18.2%

- thereof software licenses

46.8

43.7

+7,1%

175.8

150.4

+16.9%

- thereof recurring revenues

40.5

32.1

+26.2%

146.5

122.4

+19.7%

EBITDA

21.4

20.1

+6.5%

88.0

69.5

+26.6%

Margin

23.3%

25.3%

26.1%

24.4%

EBITDA (w/o one-time effect)*

21.4

20.1

+6.5%

86.1

69.5

+23.9%

Margin

23.3%

25.3%

25.5%

24.4%

EBITA (normalized EBIT)

19.4

18.3

+6.1%

80.7

62.8

+28.5%

Margin

21.1%

23.1%

23.9%

22.0%

Net income (Group shares)

10.7

11.7

-8.9%

46.9

35.9

+30.7%

Earnings per share in euros

0.28

0.30

-8.9%

1.22

0.93

+30.7%

Net income (Group shares) before depreciation from purchase price allocation

12.9

13.2

-2.7%

55.1

42.8

+28.9%

Earnings per share before depreciation from purchase price allocation

0.33

0.34

-2.7%

1.43

1.11

+28.9%

* adjusted for the positive one-off effect arising in Q2 2016 in the amount of EUR 1.9 million

Key figures by segment

In EUR million

Q4 2016

Q4 2015

Δ in %

12M 2016

12M 2015

Δ in %

Design

Revenue

58.6

55.4

+5.8%

220.9

198.8

+11.1%

EBITDA

17.4

14.8

+18.0%

63.2

49.5

+27.9%

Margin

29.8%

26.7%

28.6%

24.9%

Build

Revenue

25.5

16.6

+53.6%

87.5

60.1

+45.6%

EBITDA

1.3

2.4

-47.1%

12.8

10.4

+22.7%

Margin

5.0%

14.4%

14.7%

17.4%

Manage

Revenue

2.1

2.2

+-2.2%

7.1

6.3

+12.0%

EBITDA

0.6

0.7

-8.5%

1.6

1.3

+19.4%

Margin

30.7%

32.8%

22.7%

21.3%

Media & Entertainment

Revenue

5.7

5.2

+9.7%

21.8

20.1

+8.7%

EBITDA

2.0

2.2

-7.5%

8.4

8.2

+2.2%

Margin

35.6%

42.2%

38.6%

41.0%

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